Moscow press review for November 10, 2011
MOSCOW. Nov 10 (Interfax) - The following is a digest of Moscow newspapers published on November 10. Interfax does not accept liability for information in these stories.
VEDOMOSTI:
Lukoil is to invest over 500 billion rubles in the development of the Northern Caspian fields, Prime Minister Vladimir Putin said on Wednesday (quoted by Interfax). These costs include the construction of the coastal infrastructure, he added. Such investments are being planned over the next few decades, a Lukoil representative said. The company will invest its own money in seven fields: Filanovsky, Korchagin, Rakushechnoye, Sarmatskoye, the 170th kilometer, Khazri and Yuzhnaya. The company estimates their total reserves at 1 billion tonnes of fuel equivalent. ("Billions into the Caspian").
On Tuesday a court of appeal in Hungary ruled on the illegality of the sale of the Hungarian gas trader Emfesz of the Rosgas company, Dmitry Firtash's Group DF (which owned the trader through the Cyprus-based Mabofi) announced. Emfesz owes to Rosukrenergo $527 million. Firtash has been trying to get the asset back through a court for more than two years. "Today the company is on the brink of a financial collapse, having lost all its licenses to trade operations with gas and all its clients," Group DF's managing director Robert Shetler-Jones was quoted as saying in the company's statement, although at the time of the sale the trader had around $150 millions on its bank accounts. ("Firtash's Pyrrhic victory").
Gazprom's proceeds from natural gas sales in the first half of the year rose by 39% against the same period in 2010 to 1.5 trillion rubles, the company said in its IFRS report. Half of this sum (742 billion rubles) was brought in by European consumers. Gas exports to the EU rose by 13% in the first half of 2011, although there was a 13% fall in the same period last year. "Europe is stocking up on gas as it is expecting its price increase," said Denis Borisov, an analyst at Nomos-Bank . Gazprom's total sales in 2011 could increase by 6% to 230 billion cubic meters of gas, Borisov said. ("Cloudy half-year").
In its annual report the International Energy Agency (IEA) is proposing to Russia to learn to spend less energy. If the efficiency of the energy use were comparable to the indicators of the developed countries, Russia could save over 200 million tonnes of oil equivalent, or 28% of its annual consumption. This would be enough to cover annual energy needs of the entire United Kingdom. Each year Russia could save 180 billion cubic meters of gas, 22 million barrels of oil and 50 million tonnes of coal. This will allow to save around $230 billion before 2035, $100 billion of them for the benefit of ordinary consumers, the services sector and agriculture. ("Less Great Britain").
A requirement to disclose end beneficiaries of companies is due to be introduced as early as next year, this will require a change in the laws regarding securities and joint-stock companies, head of the Russian Federal Service for Financial Markets Dmitry Pankin said on Wednesday. If the actual shareholder wants to stay in the shadow, his shares will not be seized, but officials are going to restrict such mysterious strangers in managing companies. "The plan is to ban voting with shares in the event of a refusal to disclose end beneficiaries," Pankin told the Federation Council on Wednesday. Pankin is aware that, "many market participants will resist the introduction of the new rule."("Name or vote")
Italian tyre giant Pirelli is investing more than 400 million euros in Russia. In three years one in seven tyres will be made by the company in Kirov or Voronezh, and Pirelli can become Russia's second largest tyre producer. ("Pirelli prepared millions").
Suleiman Kerimov has bought out from the former Svyazinvest general director, Yevgeny Yurchenko, 6% in Rostelecom , a source close to the company told Vedomosti. Yurchenko confirmed selling 6% of Rostelekom's ordinary shares to Kerimov at a market price. The managing director of Kerimov's Nafta-Moskva, Anton Averin, on Wednesday confirmed the acquisition without further elaborating. Last week Yurchenko said that he owns a 6.5% stake in Rostelecom, and on Wednesday he told Vedomosti that he retains control on more than 2% in Rostelecom. This is a strategic investment on the part of Kerimov, Yurchenko said. "We are planning to build up our joint stake in Rostelekom since we consider this investment very promising," he said. ("Yurchenko steps out with money").
The United Grain Company (OZK), the state's agent regulating of the grain market and managing its stakes in thirty grain companies - could soon have a private co-owner. On November 7 President Dmitry Medvedev signed a decree increasing the company's authorized capital. As a result of the additional issue, Russia's share in the company should be at least 50% plus one voting share, and the rest can be "sold." The deadline: six months. It turns out that 50% less one share should be sold no later than May 7, 2012. ("Who wants grain").
KOMMERSANT:
Alexei Mordashev's Severstal may never get the support from the U.S. government in order to complete its project at one of its U.S. plants. An increasing number of local politicians are opposing the disbursement of the $730 million loan to the company, which is due to be received as early as the end of November. Experts believe that Severstal has become a tool of the Republicans in the fight against Democrats in the run-up to the U.S. presidential election. (Page 6, "Republicans bend Severstal").
In late October the Kuzbass Fuel Company (KTK) started approving its development strategy for a period until 2016. This happened after the company's main shareholder, Igor Prokudin, regained control over the company that he lost during an IPO in 2010. In an interview with Kommersant, he said how he was buying up shares, why he did not make an offer to other shareholders, what is facing the energy sector after the Fukushima disaster and whether coal companies should be bracing for a new crisis. (Page 7, "Impossible to brace for crisis").
Aeroflot has asked the government to urgently intervene in the process of consolidation of its Terminal D and Sheremetyevo. The company chief, Vitaly Savelyev, claims that the merger was halted as neither Sheremetyevo, nor Terminal D shareholders conducted corporate procedures to finalize the deal. Postponing the deal until next year will seriously shatter Aeroflot's financial situation. This will double the carrier's debt and deprive it of the favorable conditions for buying new aircraft. Lawyers and analysts believe that this is exactly what Aeroflot should be preparing for. (Page 6, "Aeroflot stuck at the terminal").
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